Silicon Valley Bank CEO Greg Becker cashed out stock options in the weeks leading up to Friday's collapse, netting him a $2.27 million profit, public filings reveal.
The state of California shuttered SVB on Friday, just two days after the nation's 16th largest federally insured bank announced that it needed to raise more than $2.2 billion to remain solvent, which sent its stock price plunging over 60% in 48 hours. The Federal Deposit Insurance Corporation took the embattled bank into receivership in what is being described the worst U.S. bank failure since the Great Recession of 2007-2009.
SVB achieved financial stardom during the COVID-19 pandemic because major cash deposits from the booming firms increased its deposits from $60 billion in the first quarter of 2020 to over $200 billion in December 2022, the Wall Street Journal reported. Its securities portfolio rose from roughly $27 billion in 2020's first quarter to approximately $127 billion at the end of 2021.
The FDIC moved SVB's remaining assets on Friday to the newly created Deposit Insurance National Bank of Santa Clara. Prior to the collapse, SVB had 17 branches located across California and Massachusetts. At the close of last year, the bank had roughly $209 billion in total assets and approximately $175.4 billion in total deposits.
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